Annual report pursuant to Section 13 and 15(d)

Acquisition (Tables)

v2.4.1.9
Acquisition (Tables)
12 Months Ended
Dec. 31, 2014
Business Combinations [Abstract]  
Summary of Purchase Price Allocation Reported, Retrospective Adjustments and Purchase Price Allocation as Remeasured

The following table presents the purchase price allocation reported as of the acquisition date, the retrospective adjustments recorded during the measurement period and the purchase price allocation as remeasured as of the acquisition date:

 

     As Reported      Retrospective
Adjustments
     As Remeasured  
    

(In thousands)

 

Consideration paid:

        

CBI stockholders

   $ 50,000       $ —         $ 50,000   

Redemption of preferred and cumulative unpaid dividends

     28,675         —           28,675   

Accrued interest on subordinated debentures

     1,566         (1,566      —     
  

 

 

    

 

 

    

 

 

 
  80,241      (1,566   78,675   

Assets acquired:

Cash and cash equivalents

  197,209      —        197,209   

Securities available for sale

  663,497      —        663,497   

Loans

  294,032      3,240      297,272   

Premises and equipment

  17,735      190      17,925   

Other real estate owned

  28,027      (2,075   25,952   

Income tax assets, net

  8,800      3,211      12,011   

Core deposit intangible

  2,213      —        2,213   

FDIC loss sharing assets

  9,692      1,721      11,413   

Bank-owned life insurance

  18,296      —        18,296   

Servicing assets

  —        7,497      7,497   

Other assets

  16,428      (1,792   14,636   
  

 

 

    

 

 

    

 

 

 

Total assets acquired

  1,255,929      11,992      1,267,921   

Liabilities assumed:

Deposits

  1,098,997      —        1,098,997   

Subordinated debentures

  18,473      —        18,473   

Rescinded stock obligation

  15,720      (235   15,485   

FHLB advances

  10,000      —        10,000   

Servicing liabilities

  —        6,039      6,039   

Other liabilities

  25,905      (230   25,675   
  

 

 

    

 

 

    

 

 

 

Total liabilities assumed

  1,169,095      5,574      1,174,669   
  

 

 

    

 

 

    

 

 

 

Total identifiable net assets

$ 86,834    $ 6,418    $ 93,252   
  

 

 

    

 

 

    

 

 

 

Bargain purchase gain, net of deferred taxes

$ 6,593    $ 7,984    $ 14,577   
  

 

 

    

 

 

    

 

 

 
Summary of Accretable Yield on PCI Loans Acquired

The following table summarizes the accretable yield on the PCI loans acquired from the CBI merger at August 31, 2014.

 

     (In thousands)  

Undiscounted contractual cash flows

   $ 93,623   

Nonaccretable discount

     (17,421
  

 

 

 

Undiscounted cash flow to be collected

  76,202   

Estimated fair value of PCI loans

  65,346   
  

 

 

 

Accretable yield

$ 10,856   
  

 

 

 
Business Acquisition, Unaudited Proforma Result of Operation Information

The following table presents our unaudited pro forma results of operations for the periods presented as if the CBI acquisition had been completed on January 1, 2013. The unaudited pro forma results of operations include the historical accounts of Hanmi Financial and CBI and pro forma adjustments as may be required, including the amortization of intangibles with definite lives and the amortization or accretion of any premiums or discounts arising from fair value adjustments for assets acquired and liabilities assumed. The unaudited pro forma information is intended for informational purposes only and is not necessarily indicative of our future operating results or operating results that would have occurred had the CBI acquisition been completed at the beginning of 2013. No assumptions have been applied to the pro forma results of operations regarding possible revenue enhancements, expense efficiencies or asset dispositions.

 

     Year Ended December 31,  
     2014      2013  
     (In thousands, except per share data)  

Pro forma revenues (net interest income plus noninterest income)

   $ 225,120       $ 206,258   

Pro forma net income from continuing operations

   $ 56,448       $ 40,170   

Pro forma earnings per share from continuing operations:

     

Basic

   $ 1.78       $ 1.27   

Diluted

   $ 1.77       $ 1.27